American Airlines pilots approve contract, other pilots continue push

American Airlines pilots approved a new contract, according to an announcement from the Allied Pilot Association (APA) on Monday, Aug. 21. According to the union’s announcements, 95% of eligible pilots voted on the contract, with 72.7% of those voting in favor.

The announcement said the contract includes more than $9.6 billion in total pay and benefits increases over four years. This includes $1.1 billion in “immediate, one-time payments and ratification bonuses.”

Other contract features include “annual pay rate increases for the contract’s duration and enhancements to various benefits and work rules,” according to the union.

“Work-rule changes in the new agreement are intended to help ensure more reliable service for passengers and more predictable schedules for pilots,” the APA said in a news release.

According to the union, American Airlines pilots will see “an immediate pay raise of more than 21%” under the new contract. Combined with increases in 401(k) contributions and future raises, the APA says pilot compensation rates will rise more than 46% over the course of the contract.

“This contract is a big first step toward restoring the wages, benefits and work rules that were lost during the past two decades while our profession was under continuous assault,” APA President Capt. Ed Sicher said in a statement. “As pilots, we hold a tremendous amount of responsibility with every flight we take. It’s a responsibility we take seriously, as evidenced by the U.S. airline industry’s unrivaled safety record, and it’s time for our profession to provide rewards commensurate with its unique demands.”

American Airlines warned on Tuesday, Aug. 22 that it was expecting higher costs in the third quarter of 2023 due to the new contract for pilots. The airline expects to add $230 million in expenses due to provisions in the contract for retroactive pay for the first quarter of 2023.

The American Airlines contract is the latest major development among pilots negotiating for better pay and working conditions. In March 2023, pilots at Delta Air Lines ratified a new contract that includes over $7 billion in cumulative increases in wages and benefits over four years.

United Airlines reached a four-year agreement with its pilots in July 2023. Under that deal, pilots will get a cumulative 34.5%-40.2% pay hike over four years.